As we move further into 2026, it’s obvious the later life lending sector is cementing itself as a core part of the mortgage market. The numbers make that clear, and they also show why certain client outcomes, which do not take the solutions available into account, are not working for customers, advisers or lenders.
In 2025, more than £25bn of mortgage lending went to borrowers aged over 55. At the same time, around ten times more lending went to younger borrowers whose mortgage terms will run past their expected retirement date. In simple terms, borrowing into later life is already normal.
Yet when you look at how that £25bn was written, the client solution feels somewhat hard to defend. Less than 1% was written as RIOs. Fewer than 10% was written as lifetime mortgages, with around 90% of that lending to the over-55s written as standard term mortgages. For me, that simply cannot be the right outcome.
What the data is really telling us
These figures do not suggest a lack of demand. They point to a lack of joined-up, holistic advice, and potentially, a lack of knowledge about what is available. Products built for specific later life needs exist, but they are often being overlooked or ignored.
That matters, because standard term mortgages were never designed to fulfil later life needs, particularly well into retirement. Income changes. Spending priorities shift. Flexibility and certainty matter more.
Putting older borrowers into products by default, rather than by proper choice, is not what customers deserve. It is also not where the market can stay, especially as more people carry mortgage debt well into later life.
The FCA has recognised this. In its Mortgage Rule Review and roadmap, published just before Christmas off the back of last year’s Discussion Paper, it made later life lending a clear priority. It has also been clear that the current balance needs to change.
What the FCA is signalling next
Over the year ahead, the regulator will take three important steps. First, it will launch a focused market study to test whether the later life market is ready for future demand. This will look at product supply, adviser capacity, consumer understanding and value.
Second, it will review the RIO framework, including affordability rules and how loan-to-income limits apply. Third, it will explore whether advice should become even more holistic.
This direction of travel matters. It shows the regulator sees the same gaps that many of us see today.
Why advisers sit at the centre of change
None of this works of course without advisers. They are the link between regulation, products and real client needs. At more2life, we work with advisers who are fully active in later life lending, and with many who are not. Both groups matter.
For advisers already working in this space, the opportunity is about doing more for clients. For advisers who are not active yet, later life lending does not mean taking on something unfamiliar overnight. It means understanding when these products may be right, advising yourself; or if you’re not able to, then knowing when to refer or work with a specialist. No adviser should feel later life options sit outside their duty to the client.
This is exactly why the debate around advice silos and qualifications matters so much. Whether a customer sees all their options should never depend on which exam an adviser has taken, or indeed which adviser they see.
How more2life supports better outcomes
Our role is to make it easier for advisers to deliver good outcomes, whatever their starting point. That means products built around real later life needs. It also means tools that reduce friction.
It also means education and support. Advisers need confidence, not fear, when discussing later life lending. Clear guidance from the regulator will help, but lenders also have a responsibility to support advisers properly and we’ll certainly continue to do this.
Why this matters for over-55 clients
For customers, this is about choice and control. Housing wealth is often their largest asset. Used well, it can support later life income, repay debt, fund home changes, cover care needs, or help family members. Ignored, overlooked or poorly explained, it becomes a missed chance, especially when the data shows the market already exists, and the demand is only going to grow larger. The time to grasp that opportunity for advisers is right now. We will certainly be here to support all those who wish to.
